GOLD – Selling Pressure Eases Near Critical $4,000 Support

Gold edged higher on Friday after repeatedly failing to break decisively below the psychological $4,000 support level.

The precious metal remains on track for a fourth straight weekly decline, weighed down by a firmer US dollar amid increasing expectations that the Federal Reserve will begin raising interest rates, with markets currently pricing in the first move as early as September.

Additional pressure came from Thursday’s US PCE inflation report—the Fed’s preferred inflation gauge—which showed inflation rising above 4% for the first time in three years, reinforcing expectations of tighter monetary policy.

However, bears are encountering strong resistance around the $4,000 zone, a significant support area tested for the first time since November 2025. Oversold daily indicators, coupled with likely profit-taking ahead of the weekend, may help provide temporary support and trigger limited corrective gains.

Any near-term recovery is likely to be viewed as an opportunity to re-establish short positions while the fundamental backdrop remains supportive of the dollar and technical indicators continue to signal a bearish outlook.

On the upside, firm resistance at $4,170—where the falling 10-day moving average converges with the 50% retracement of the $4,382–$3,959 decline—is expected to cap advances and preserve key barriers at $4,200 and $4,220, the latter representing the 61.8% Fibonacci retracement level.

Res: 4076; 4121; 4170; 4200
Sup: 4000; 3959; 3886; 3800